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5 years ago
MARKET EYE-India's Maruti shares jump as CLSA upgrades to 'buy'
January 7, 2013 / 4:42 AM / 5 years ago

MARKET EYE-India's Maruti shares jump as CLSA upgrades to 'buy'

1 Min Read

* Shares in India's Maruti Suzuki gain 2.8 percent
after earlier touching its highest level since Jan 4, 2011,
after CLSA upgraded the stock to 'buy' from 'sell' with a target
price of 1,915 rupees.
* CLSA says Maruti's earnings is improving, with passenger
vehicle demand seen gradually recovering over fiscal 2014-15 on
the back of improving economic growth and falling interest
rates, according to a note dated on Saturday.    
* The brokerage also says Maruti's renewed focus on exports and
the launch of a new compact sports utility vehicle will add to
volumes.
* Earnings sensitivity to the Japanese yen will also wane
as the company builds more cars in India and boosts exports,
CLSA says. 
* CLSA's upgrade comes as the majority of analysts already have
'buy' or equivalent ratings, with 14 'buy' and 19 'outperform'
ratings, as per I/B/E/S estimates.

 (abhishek.vishnoi@thomsonreuters.com /;
abhishek.vishnoi.reuters.com@reuters.net)

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